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Posted July 08, 2022

Sean Ring

By Sean Ring

Political Volatility Is Kicking In

  • Former Japanese PM Shinzo Abe was shot during his speech in Japan.
  • British PM Boris Johnson resigns after years of scandals.
  • European farmers rebel against their governments green agendas.

Happy Friday from yet another rainless day in Asti.

Im off to New York in just over a week to teach my fill of graduate classes.

But before I return to the States, Im going to enjoy Europe as much as possible.

If I can

Ive written extensively about the price volatility weve seen across asset classes.

But Ive only hinted about the political volatility that was coming.

After now former Australian PM Scott Morrison got handily thrown out of office for all sorts of mismanagement, I thought thatd be the beginning of upheaval across the developed world.

That upheaval took a bit longer to manifest itself, but now its coming thick and fast.

In todays edition of the Rude, well look at some of the drama running amok around the world.

Abe Shot in Japan

Hot off the press this morning: Former Japanese Prime Minister Shinzo Abe was shot during a speech he was making in western Japan.

While Abe is no longer prime minister, he and his government were staunch supporters of the United States under both Obama and Trump.

Abe also got Japan more involved in relationships besides the Big 3 of the United States, China, and Korea.

Abe wanted to diversify Japans relationships as it was clear too much rested on the Big 3.

Its too early to know why the perpetrator shot Abe.

One theory is that Abe supported Taiwanese independence and not a more comprehensive relationship with China.

But thats pure speculation and too early to call.

With that said, I hope the former PM makes a full recovery.

Boris Out in the UK

Ill never disavow my past support for Donald Trump.

As president, Biden has been a complete disaster, just as I said he would.

But boy, am I sorry I fell under Boriss charm!

In my defense, Theresa May was just awful as the British Prime Minister.

She called an election far too early and lost support due to that decision.

During that entire election campaign, all she did was repeat the slogan, Strong and stable.

Because she repeated that phrase so much, most voters thought her weak and volatile.

She couldnt get a deal done with the EU over Brexit.

And I didnt think much of her as Home Secretary (the UKs version of Homeland Security), either.

But having cavalier former journalist and Brexiteer Boris Johnson as PM?

It seemed like a huge treat!

So in July 2019, May stepped down in favor of Johnson.

Then, in December 2019, Boris delivered a landslide election victory, breaking the Labor Partys Red Wall in the North of England.

The Conservatives, Johnsons party, won 365 seats to Jeremy Corbyns Labor, who only took 202 seats.

Three cheers for Boris!

But unfortunately, Boris, as the British say, cant organize a piss-up in a brewery.

That is, he was utterly disorganized and distracted.

From The Wall Street Journal:

His resignation marks an inglorious end to one of the most tumultuous political premierships in recent British history. Since Mr. Johnson came into office in July 2019 with the largest Conservative majority in over 30 years, his unorthodox leadership style saw him complete Britains exit from the European Union, lead the country through the pandemic and push the U.K. to the forefront of supporting Ukraine after the Russian invasion. During his time in office, the 58-year-old also got married, had two more children, and was hospitalized after catching Covid-19.

That Johnson got pushed out over a few Downing Street parties during Covid and appointing a Conservative whip, who likes touching up men at bars merely masks he got some big calls wrong.

    • He went from Conservative to green socialist in a snap. In essence, he got woke.

    • He kept the country locked down for too long and forced vaccines on those who didnt want them.

    • He didnt do the hard yards to prepare the UK for the technicalities of Brexit.

    • And he went over the top against Russia versus Ukraine.

Ultimately, thats why hes out.

The absurd story that MPs didnt trust him to tell the truth?

Jesus all politicians do is lie all day anyway!

And across the North Sea

Dutch Farmers Say No to New Green Regulations

Imagine thinking a bunch of PhDs who live in cockroach-infested city apartments know more about nature than farmers.

Well, thats what the World Economic Forum and its ilks thinking.

Dmitry Orlov calls those city mice the English majors because they have no idea how the real world works.

The country mice, our all-too-important and often neglected farmers are the victims in this latest battle.

Prime Minister Mark Rutte and his leftist coalition want to impose the EUs green agenda standards.

Under the Natura 2000 network, the EU obligates its member states to ensure that the sites are managed in a sustainable manner, both ecologically and economically.

To fulfill that mandate, the Dutch government has announced plans to reduce nitrogen oxide emissions produced by livestock by 50% by 2030.

Last month, the government described the move as an unavoidable transition.

Can you just hear Klaus Schwabs echoes in that last sentence?

The Dutch farming lobby has estimated that the government could shut down 30% of livestock farms.

So its no mystery why farmers are rallying around their cause.

Of course, Dutch cops are getting uppity and have taken shots at the protesters.

Biden Sells Oil to China?

Five million barrels of the Strategic Petroleum Reserves release were exported.

Yes, you read that right.

Oh, it gets better.

Some of that oil made its way to China.

From Reuters:

More than 5 million barrels of oil that were part of a historic U.S. emergency reserves release to lower domestic fuel prices were exported to Europe and Asia last month, according to data and sources, even as U.S. gasoline and diesel prices hit record highs.

The export of crude and fuel is blunting the impact of the moves by U.S. President Joe Biden to lower record pump prices.

Releasing oil from the Strategic Petroleum Reserve is just a marketing stunt.

But if youre going to do a marketing stunt, at least do it right.

Power the Future founder Daniel Turner said the decision to sell oil to China highlights the Biden family's "relationship with China."

Biden's son, Hunter Biden, is tied to Sinopec.

In 2015, a private equity firm Hunter cofounded bought a $1.7 billion stake in Sinopec Marketing.

Tucker Carlson said this was an impeachable offense.

Wrap Up

Food, water, and energy.

You need them in abundance for any place to run well.

Our politicians are failing to deliver that to us.

And now, the people are striking back.

Sometimes at the ballot box. Sometimes in more violent ways.

Whats certain is that our political system is in upheaval.

Im not sure thats a bad thing. But Im pretty sure this is just the beginning.

On that somber tone, I wish you a wonderful weekend!

All the best,

Sean

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